(Bloomberg) —
Tourism, manufacturing and a large US government contract fueled economic growth in small towns ranked in a report as the most vibrant this year.
Los Alamos, New Mexico, topped the “Most Dynamic Micropolitans” 2024 list from the Heartland Forward nonprofit think tank, thanks in part to government labs and a highly educated workforce that fostered economic momentum there.
Also ranking high among cities with a population of 10,000 to 50,000 were places with beautiful vistas attracting tourists and remote workers, areas where the electric-vehicle industry is building mega-plants and towns relying on the oil and gas industry.
Heartland Forward, an organization that focuses on economic development in the center of the country, assessed micropolitans based on indicators such average pay, employment, real gross domestic product and personal income over the short- and mid-term. Other measures include the share of startups.
The 2024 report showed that many post-pandemic-era factors that held back big cities — office vacancies, reluctance to commute and aspiration for higher quality of life — continued to be an asset for some small towns. Another driver of growth were investments in manufacturing fueled by new technologies, federal programs and businesses bringing production back to the US.
Take Jefferson, Georgia, which saw its population soar by more than 75% since the 2010 Census Bureau survey and ranked second in the report. The local county benefited from a long-term investment from South Korean firm SK Innovation to manufacture lithium batteries.
Tourism was the main driver of economic growth in seven of the top 10 towns in the report. They include Jackson, Wyoming; Key West-Key Largo, Florida and the ski resort of Breckenridge, Colorado.
Tourism-driven economies traditionally have experienced large fluctuations in growth. But the rise of telework has added new residents and sources of income to some areas.
© 2024 Bloomberg L.P.
